RNB RETAIL AND BRANDS: Interim report 1 September 2013 - 31 May 2014

Regulatory News:

THIRD QUARTER, MARCH 1, 2014 – MAY 31, 2014 IN SUMMARY

· Net sales amounted to SEK 442 M (609, including the divested JC-operation).

· An impairment of goodwill in Brothers & Sisters of SEK 151 M has occurred.

· Operating income, excluding impairment of goodwill, amounted to SEK -15 M (-27). Operating income during the previous year included SEK -8 M in respect of JC.

· Profit before tax, excluding impairment of goodwill, amounted to SEK -18 M (-30).

· Profit after tax amounted to SEK -169 M (-30), corresponding to SEK -4.99 (-2.99) per share. The result includes an impairment of the goodwill in Brothers & Sisters of SEK 151 M after tax.

· Cash flow from operating activities amounted to SEK -22 M (-44).

· Two new stores were added during the quarter, both franchise stores of Polarn O. Pyret, one in the UK and one in Estonia.

THE PERIOD, SEPTEMBER 1, 2013 – MAY 31, 2014 IN SUMMARY

· On November 1, 2013, RNB Agreement entered into an agreement to divest the subsidiary JC to Denim Island AB. During the first quarter of the present year, JC’s sales amounted to SEK 111 M and its operating income totaled SEK -6 M. In the 9-month period of the previous year, JC’s net sales amounted to SEK 509 M and its operating income totaled SEK -318 M, of which SEK -260 M related to impairment of the trademark in the second quarter.

· Net sales amounted to SEK 1,538m (1,978, including the divested operation).

· An impairment of goodwill in Brothers & Sisters of SEK 151 M has occurred.

· Operating income, excluding impairment of goodwill in Brothers & Sisters, amounted to SEK -4 M (-55).

· Profit before tax, including the divested operation, amounted to SEK -13 M (-81), excluding impairment of goodwill in Brothers & Sisters of SEK 151 M and impairment of goodwill and the previous year’s impairment of the JC trademark (SEK 260 M). The equivalent result excluding the divested operation amounted to SEK -7 M (-23).

· Profit after tax amounted to SEK -165 M (-341), corresponding to SEK -4.86 (-85.77) per share. The result includes this year’s impairment of goodwill of SEK 151 M in Brothers & Sisters and the previous year’s impairment of SEK 203 M after tax of the JC trademark.

· Cash flow from operating activities was SEK 0 M (-85)

· Apart from the takeover of 24 stores that occurred in Norway in connection with the acquistion of the Master Franchisee WAM AS, three new stores (Polarn O. Pyret) were opened during the period, of which one was a proprietary store (Sweden) and two were franchise stores (UK and Estonia).

· During the first quarter, Polarn O. Pyret AB entered into an agreement to acquire 100 percent of the shares in WAM AS in Norway. WAM AS was the master franchisee of Polarn O. Pyret in Norway. Completion of the acquisition occurred on January 2, 2014.

For further information, please contact:

Magnus Håkansson, CEO, RNB RETAIL AND BRANDS,
+46 8 410 520 02, +46 768 87 20 02, e-mail:  magnus.hakansson@rnb.se

Stefan Danieli, CFO, RNB RETAIL AND BRANDS,
+46 8 410 522 25, +46 768 87 22 25, e-mail: stefan.danieli@rnb.se

The information is such that RNB Retail and Brands AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publishing at 07:30 a.m. on June 26, 2014.

RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing, accessories, jewelry and cosmetics stores that focus on providing excellent service and a world-class shopping experience. Sales are mainly conducted in Scandinavia through the three store concepts Brothers and Polarn O. Pyret, as well as through shops in the department stores NK in Stockholm and Gothenburg. RNB RETAIL AND BRANDS has operation in 11 countries. RNB RETAIL AND BRANDS has been listed on the OMX Nordic Exchange since 2001.

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